Another extension for the jeepney modernization program

Eighty-five percent of all public utility vehicles (PUV) are expected to be consolidated as cooperatives or corporations under the Public Utility Vehicle Modernization Program (PUVMP) by April 30, 2024.

That is an expectation of government after President Marcos granted a three-month extension of the deadline which ended Dec. 31, 2023.  This is the eighth extension of the order for PUVs to consolidate, a step to continue the process of the PUVMP which was launched in 2017.

The government is looking at consolidating some 170,000 traditional jeepneys, according to reports.

The President has been praised for being a “sensitive and attentive” leader for granting the extension of the consolidation requirement which will stop the livelihood of thousands of jeepney drivers who will not join a cooperative or corporation.

Consolidation is a key step toward the modernization of passenger jeepneys but thousands of jeepney drivers have not done so due to various reasons, among them the thought of purchasing a modern jeepney unit which costs more than a million pesos, or the inability to join a cooperative or corporation due to financial reasons.

The consolidation will serve as the basis for the issuance of the franchise to operate. The franchise will be given only to a transportation cooperative or corporation.

Consolidating as a cooperative or corporation, as the business framework of running the transportation line, will allow the purchase of the modern jeepneys and guide the efficient management of resources.

Currently, the consolidated PUVs nationwide is at 76 percent and in Metro Manila, the consolidation rate is at 52 percent.

Transportation Secretary Jaime J. Bautista had said 76 percent consolidation is enough to implement the program.  “With this extension, we can increase it to 85 percent and with this rate, this will be a successful program.”

The rate of consolidation in Metro Manila is low at only 52 percent. The Land Transportation Franchising and Regulatory Board (LTFRB), expects that rate to increase to 85 percent by April 30 deadline.

The three-month period of the extension should be used by the authorities to review the program thoroughly.

Senator Grace Poe said the review should check “to see the gains of the program and to better understand the defiance of some groups to it.” She pointed out that the “high cost of the new vehicles has proven to be a big stumbling block to the rollout of modernization, and should not be ignored.”
Senator Imee Marcos said the extension should also be used to study the livelihood of the jeepney drivers. “This additional time should be used not only to allow jeepney drivers to consolidate. This period should be used to “come up with a better solution to allow our jeepney drivers and owners to continue with their livelihood.”

PUV groups should also use the time to study livelihood options for members who cannot join a cooperative or corporation. They can partner with government agencies like TESDA to conduct learning sessions on possible livelihood opportunities. They can also inquire from microfinance institutions for possible loans to start a livelihood venture.

The PUVMP was launched in 2017, slowed down the roll out during the pandemic, and continued the implementation after restrictions were lifted in 2022. The Dec. 31, 2023 deadline was announced in March 2023. It has been extended to April 30, 2024.

We hope and trust that during the extension period, the authorities will consider the proposals from other key stakeholders that seek to improve the implementation of the program, so that it brings forth the greatest good for the commuters who deserve convenient and affordable means of public transportation.